This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

GeoPetro Resources Company Closes The Sale Of Idle Equipment Transaction For $9.25 Million And Retires All Bank Debt

SAN FRANCISCO, Sept. 19, 2011 /PRNewswire/ -- GeoPetro Resources Company (NYSE Amex: GPR) ("GeoPetro", "we", "our" or the "Company") is pleased to announce that on September 13, 2011, its wholly-owned, indirect subsidiary, Madisonville Midstream LLC ("MML") closed a transaction with Peregrine Midstream Partners LLC ("Peregrine") to sell certain idle and non-income producing equipment ("assets") at its gas treatment plant located in Madisonville, Madison County, Texas for $9,250,000.  Peregrine had previously paid non-refundable deposits of $1,575,000 prior to closing, and Peregrine paid the remaining purchase price balance of $7,675,000 on September 13, 2011.

Simultaneously with the closing of the Peregrine transaction, the Company repaid its secured loan from the Bank of Oklahoma.  The loan, in the original principal amount of $7.7 million, was made in December, 2008 when GeoPetro, through its subsidiary MML, purchased the Madisonville gas treatment plant.

The Company is further pleased to announce that field work is continuing on the maintenance and upgrade of the gas treatment plant and workovers of the Magness and Fannin wells in the Madisonville Field.  We expect to complete the work and reestablish production from the two wells at an estimated rate of 8 million cubic feet of natural gas per day in October, 2011.  At that level of production, our Madisonville Project is expected to be cash flow positive.

Addressing the closing of the Peregrine transaction and the repayment in full of the Bank of Oklahoma loan, GeoPetro's President & CEO, Stuart J. Doshi commented "Closing the Peregrine transaction and retiring our bank debt are significant milestones for GeoPetro.  We continue to prudently manage and enhance our liquidity and capital positions.  With much improved liquidity and a stronger balance sheet, the Company is now well-positioned to focus on enhancing our gas production in Madisonville Field, continuing to explore and develop our other projects, and implementing strategies to increase shareholder value."

"The Company is also focused on securing an industry partner to do additional workovers on the Mitchell and Wilson wells in the Madisonville Field to further increase production, and undertake the drilling of a deep well to test six (6) highly prospective zones in the Madisonville Field.  Our 3D seismic shows a very attractive structural closure with a high potential for a major discovery."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,082.71 -7.40 -0.35%
NASDAQ 5,113.1360 -14.3890 -0.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs